Lumber Futures Profile
Lumber Futures Contract Specs:
Lumber Basics::
The random lengths futures contract has been trading since 1969.
The contract specifies 110,000 board feet (one 73’ flat car) of random length 8’ – 20’ softwood 2 x 4s, the type used for rehabbing and construction.
New home construction drives the demand for lumber.
Largest lumber producers: Weyerhauser Company, Rayonier, Louisiana-Pacific Corporation, Universal Forest Products, Massisa S.A. (Chile).
Lumber Futures Trading Tips :
Demand for lumber picks up as new home construction increases.
Lumber prices tend to hit seasonal peaks in February and decline through fall.
Lumber futures show good trending characteristics and track the overall health of the economy.
Lumber futures are very illiquid and prone to wild swings in price for no apparent reason.
Demand can increase for lumber during hurricane season. Plywood demand increases before a hurricane hits, as coastal residents board-up their windows to protect their houses. Demand for lumber should increase if a hurricane causes significant property damage and homes need to be rebuilt.
- Ticker Symbol: LB
- Exchange: CME Group
- Trading Hours: 10:00 a.m.- 2:05 p.m EST.
- Contract Size: 110,000 board. feet. of random lengths 2x4s (8' to 20')
- Contract Months: January, March, May, July, September, and November
- Price Quote: Ex $242.0 per 1,000 board feet.
- Tick Size: 1 point = $.10 per 1,000 bd. ft. = $11 per contract
- Last Trading Day: The business day prior to sixteenth calendar day of the contract month.
Lumber Basics::
The random lengths futures contract has been trading since 1969.
The contract specifies 110,000 board feet (one 73’ flat car) of random length 8’ – 20’ softwood 2 x 4s, the type used for rehabbing and construction.
New home construction drives the demand for lumber.
Largest lumber producers: Weyerhauser Company, Rayonier, Louisiana-Pacific Corporation, Universal Forest Products, Massisa S.A. (Chile).
Lumber Futures Trading Tips :
Demand for lumber picks up as new home construction increases.
Lumber prices tend to hit seasonal peaks in February and decline through fall.
Lumber futures show good trending characteristics and track the overall health of the economy.
Lumber futures are very illiquid and prone to wild swings in price for no apparent reason.
Demand can increase for lumber during hurricane season. Plywood demand increases before a hurricane hits, as coastal residents board-up their windows to protect their houses. Demand for lumber should increase if a hurricane causes significant property damage and homes need to be rebuilt.
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